A Multiple-Acquirer Strategy Can Increase Conversion Rates

Mar 25, 2021

One sure-fire way for merchants to boost their revenue is to improve their current payment processing solutions. Merchants must know that payments, by their nature, are very much local. Every country has its own language, culture, and technology that will inevitably dictate how payments are processed. 

Therefore, a key strategy to maximize conversions and approvals, as well as tapping into new markets, is to have “local processing partners” established. One way to do this is to adopt a multiple-acquirer strategy. This way, merchants can still have global reach while benefiting from connecting with the local acquirers. Ultimately, this will drive up sales and increase the merchant’s bottom line. 

What Is A Multiple-Acquirer Solution?

Having a multiple-acquirer solution essentially means building a solid network of acquirers so that, collectively, they can provide payment processing coverage worldwide. This diverse network is then merged into one single integration, forwarding all merchant transactions, regardless of location. 

It is vitally important that a merchant chooses a payment provider that automatically connects the payment to the most suitable acquirer and one that is best equipped to handle that particular variety of transactions. 

Multiple-Acquirer Strategy Boosts Conversion Rates

According to a study conducted by Edgar Dunn & Co., 85% have witnessed a boost in conversion rates. Of the 93 merchants surveyed, 43% mentioned an increase between 1% to 5% within their conversion rates. Nineteen percent of them experienced an increase from 6% to 10%, a greater than 10% increase was seen by 23%. 

The top reasons why merchants have turned to using multiple-acquirers were resiliency at 21%, reduction in operation costs (21%), and enhancing conversion rates at 14%.

In the age of e-commerce and its subsequent increase in electronic payments, it is imperative to have backup acquirers in case there are issues with processing transactions.

Overall, merchants that do use multiple-acquirers have experienced positive results, with 71% reporting that they are either satisfied or very satisfied with it. 

Adopting a multiple-acquirer solution means that transactions are more likely to be approved. Merchants are able to settle in the local currency at the “correct value”. Moreover, merchants can take advantage of lower processing fees. This is all possible due to using a payment processor that connects them with an acquirer that is local. 

Merchants that have adopted this multiple-acquirer solution strategy have been mostly satisfied with this tactic, with 71% reporting that they were “satisfied” or “very satisfied” with it. 

The report also found that 57% of merchants presently work with multiple acquirers. About 40% of the merchants surveyed said they currently used a single acquirer but hope to use multiple acquirers in the next 12 months. 

The Answer Is Clear

Based on survey results, it was clear that merchants acknowledged the many benefits of working with multiple acquirers. Many mentioned an enhancement of acceptance rates as a plus as well as the ability to tap into a broader line of payment methods. 

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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